February 17, 2004
Selling Iraq's Skies
Iraq Revenue Watch gives us a report (pdf) on the sale of the Iraqi air sector behind closed doors. It notes that the CPA is skirting infringement of the Hague Conventions requiring occupying powers to preserve the capital of state assets. A press release from the Open Society Institute states that:
...The CPA, which now controls Iraq’s air industry, has publicly acknowledged the economic potential of the air transport sector, and has called for increased investment. But neither the CPA nor the Iraq Governing Council have allowed the domestic air transport sector to compete with foreign companies. Royal Jordanian airlines is currently using Iraqi airports and their equipment, while Bechtel Corp. and Halliburton have been contracted to manage the airports. Iraq’s national carrier, Iraqi Airways, was denied permission to lease planes to fly pilgrims to Mecca for the annual hajj.
As Iraqi Airways languishes, plans are being made to privatize it without any public bidding. Iraq Revenue Watch obtained a contract to establish a joint venture named al Iraqiyya Air. It was signed by the Iraqi Ministry of Transport and three members of the powerful Khawwam al Abdul Abbas family, which, according to local news reports, had close ties with Saddam Hussein’s regime and were oil smugglers under United Nations sanctions. While the contract requires the Ministry of Transport to surrender Iraqi Airways planes, agreements, and other valuable assets, it is not clear what the other signatories are contributing to the deal. ...
Moral clarity at its finest. Iraqis are losing jobs, along with ownership of their national assets, to unaccountable foreign investors and suspected criminals with close ties to Hussein. Flyover fees for their airspace and usage fees for the airports and maintenance equipment are no longer being collected, and will not be available to help pay for the reconstruction.
No bid contracts, squeezing the public sector, boosting unemployment, and flouting laws regarding business transactions... You can see who the Bush administration couldn't be satisfied with only bringing these blessings to American citizens.
Posted by natasha at February 17, 2004 05:52 PM | TrackBack